[4:17] I can't believe it's already Monday is what I can't get over. No. Hello.

[4:27] Looks like we're all here. We'll call the meeting of January 26, 20, 26, first meeting of 26 to order. Chris, can I get a roll call? Yes, sir. Trustee Bergman. Trustee Burt. Yeah. Trustee Dackis. Here. Trustee Fox. Yeah. Trustee Gle. Here. Trustee Horgan.

[4:49] again. Here. Trustee Jill. Trustee Lone. Here? Trustee Resnick. Chair Gras. Here.

[5:01] All right. We'll move into the approval of the agenda. We also have somebody that's

[5:05] going to speak on this. Catherine the vote.

[5:09] When we get into the applications for disability

[5:12] the community retirement, the county attorney is not available today because of a emergency.

[5:19] So my initial thought is to move or boom into February, I know on item B, the reconsideration.

[5:27] The applicant is online and would like to still speak today.

[5:33] My thought is that we could decide on whether we're going to do a reconsideration or not and move the second part of that to February when the county is available.

[5:40] to make a comment and represent their side of that.

[5:47] Sure, go ahead.

[5:49] I just want to clarify something regarding their boom in,

[5:52] all the parties did agree to the continued answer requested on that one.

[5:56] Thank you.

[5:57] So Catherine, I'll have you come up.

[5:59] We'll take your comment and then we'll decide how we're going to go forward.

[6:17] Good morning everyone and happy new year.

[6:20] So as noted, Ms. Kempner, who as many of you know has represented the county

[6:25] for many years. I'm here before the board had expressed her intention to be here today

[6:30] in representation of the county on both items that were agendized. Unfortunately on Thursday,

[6:36] one of her family members was killed in an accident, which immediately necessitated

[6:40] her having to leave California. She's deeply concerned about her inability to be here today

[6:46] with the idea that things might move forward without her properly representing the county.

[6:51] I very much appreciate the recommendations already of the chair and would simply ask for

[6:57] this extension, which is less than 30 days total time.

[7:01] So we appreciate that and would hope that we could grant that courtesy based on the extraordinary

[7:06] nature of the circumstance.

[7:07] Thank you.

[7:09] Thank you, Ms. Levo, and our condolences for our losses.

[7:16] Does anybody want to make a comment?

[7:17] We're dealing with that item now because it's related to the approval of the agenda and how we're going to proceed today.

[7:27] I guess I'm in favor of continuing the item because I'd like to hear from the county.

[7:33] Okay.

[7:34] I would agree as well.

[7:35] Okay.

[7:36] Thank you.

[7:36] It's here to speak though.

[7:38] We can.

[7:48] Okay. Why don't we leave item B,

[7:54] Doug Otto on the agenda?

[7:55] He can make his comment.

[7:57] No good decision will be made if that's okay for your motion.

[8:00] It's okay.

[8:00] Okay.

[8:03] Thank you, Horton and Kelly.

[8:04] Wait

[8:07] for the item and then vote, but the way it can tell us.

[8:13] We need to vote on the approval of the agenda, though, with those changes.

[8:17] I'll motion to approve the agenda.

[8:19] As amended.

[8:20] As amended.

[8:21] Thank you.

[8:24] Shegan,

[9:17] I don't have anything on my screen.

[9:19] Yes, this is my vote, though.

[9:29] Good, okay.

[9:30] Motion passes.

[9:31] All right, they see it up there now.

[9:32] All right, we'll move into consent.

[9:33] Any board members have questions or comments on any of the items on consent?

[9:36] And if not, can I get a motion?

[9:43] Thank you.

[9:45] I

[9:51] just like to say I'm going to vote, but if I will abstain from item A, as I was

[9:56] not in that meeting, otherwise my vote.

[9:58] Thank

[10:00] you.

[10:16] My vote is yes again.

[10:21] That motion passes.

[10:22] We'll move into applications for disability retirement, as we just discussed, item A is being

[10:28] pushed.

[10:29] Item B, we're just going to hear the applicant's statement and we'll move forward.

[10:33] Mr. Delgado, I see you're online.

[10:36] Yes, take it away.

[10:37] I was actually going to make a statement, but I'm out of respect for Mrs. Campner's situation.

[10:43] I'm just going to hold off until next month, and I don't want to provide a statement at this point.

[10:50] It's she's not present, so we'll just wait.

[10:52] Thank you, Mr. Delgado. I appreciate that.

[10:55] Moving along, investment manager presentations.

[10:58] Item A, annual investment presentation by...

[11:01] Okay. Can I motion to move that item to the following meeting? Please.

[11:08] We have to vote to move it. Okay. Yes. Second. I thought that though. Okay. There you go.

[11:16] Thank you.

[11:22] And that's a motion for both items A and B.

[11:29] A was already moved.

[11:31] Um, per the approval of the agenda. It's for B and C, which are both for Delgado.

[11:47] I do appreciate that we all work well together.

[11:50] We've got each other's bags. Thank you.

[11:59] My vote is yes, Chris. I've got nothing on my screen.

[12:15] Motion passes. Now we'll move

[12:16] into investment management presentations. First item is the annual investment presentation

[12:21] of the Sal Value Partners and I'll hand it over to Dan.

[12:24] I think you are right. Real estate managers are often viewed in one

[12:36] of additional categories, but those are really the main ones.

[12:39] We'll be hearing presentations today

[12:41] from two top real estate managers,

[12:43] both firms are very strong and deep organizations,

[12:46] but they manage very different mandates for Vicerah.

[12:49] LaSalle manages the value-add strategy

[12:51] and PGM, a core strategy.

[12:54] The first up is LaSalle.

[12:56] The board committed 100 million to LaSalle's growth

[12:59] and income fund eight, a 2019 vintage year,

[13:02] and 75 million follow-on fund to Value Fund 9, which is a 2023 vintage fund, both the

[13:11] cell funds of Value Ed. Value funds invest in high quality but unstabilized properties

[13:18] where they can add value. They develop properties, they buy properties with below-market rents to

[13:24] upgrade in order to command higher rents, or they might simply look for properties that

[13:29] price or in the markets that they think will outperform. After adding value, they will

[13:35] typically sell these stabilized properties to core managers. They'll be like Proventile

[13:41] or like PGM, which is coming up next. Fund A properties are at various stages of executing

[13:45] their business plans and fund nine is at the front end of its deployment. Now I'm going

[13:51] to turn over to head of investor relations, Chad with Cunningham, who will introduce

[13:55] Sal Value Partners and its presidents and CIO, Jeff Schuster.

[13:59] Chad Odieu.

[14:01] Thanks, Dan.

[14:02] And thank you to the Vissera Board of Retirement.

[14:05] We appreciate this opportunity to present Sal Value Partners U.S.

[14:09] or LVP U.S. as we call it.

[14:12] As Dan said, my name is Chad Wood,

[14:13] Cunningham and I'm a Relationship Manager

[14:15] with LaSalle's Investor Relations Team.

[14:18] I am based in Chicago at our Global Headquarters,

[14:20] which is where I've been since joining the firm

[14:23] over 20 years ago. I work with institutional investors and consultants across the western

[14:28] half of the United States, which means I have the good fortune of working with two of

[14:33] my favorite people in Dan and Paris. As Dan also referenced, joining me this morning

[14:38] is Jeff Schuster, president of LVP U.S., which is our flagship closed-in value ad fun series

[14:45] in the U.S. Jeff is based in New York City and joined LaSalle in 2020 after spending 12

[14:52] years at Starwood Capital Group where he completed real estate transactions valued in the

[14:57] billions. Before I hand things over to Jeff, who

[15:00] We'll go into detail on your investments in our Value Add Fund series. We wanted to give you a brief overview on LaSalle. And I promise to keep this short. So if we go to the next slide, admittedly, there's a lot of text on this slide. So let me just focus on really three key takeaways. First, is scale and experience. LaSalle manages almost 90 billion in assets and has been investing exclusively in real estate for 45 years.

[15:26] That experience gives us a long-term perspective and a discipline approach across market cycles.

[15:33] The second thing is breadth of capability.

[15:36] We manage a full spectrum of real estate strategies and products from

[15:39] Pomegal funds like LVP US to separate accounts, equity debt and even listed securities.

[15:45] That flexibility helps us to meet a wide range of client objectives.

[15:50] And then lastly, alignment with US-based public pension plans.

[15:54] More than 50% of our AUM in the Americas comes from U.S. public pension plans, and nearly

[16:01] 50% of LVP's commitments in the last two funds come from U.S. public pension plans.

[16:06] So we're naturally aligned with investors like Ventura County Employee's Retirement

[16:09] Association, who shares similar goals around generating attractive risk-adjusted returns.

[16:15] If we go to the next slide, Global Reach with Vocal Presence, Real Estate is inherently

[16:22] local, which is why having teams on the ground and the markets we invest in is so important.

[16:27] OSAW's 850-person global platform spends North America, Europe, and Asia Pacific, giving

[16:32] us both local insight and global perspective.

[16:35] We see firsthand how capital flows and investor demands across regions influence pricing

[16:40] here in the U.S. and that ability to share intelligence across markets, and paired with global perspective

[16:45] with local execution, is one of the OSAW's key differentiators.

[16:48] If we go to the next slide, how we leverage the strength of JLL.

[16:56] So the Sal is a wholly owned subsidiary of Jones and Lesal, a Fortune 500 company with

[17:00] over 112,000 employees in a 250-plus year history.

[17:05] Under the Jones and Lesal umbrella sits two groups, Lesal and JLL.

[17:09] Lesal focuses exclusively on real estate investment management and JLL focuses exclusively on real

[17:15] real estate services, which means the entire organization is 100% centered on real estate

[17:20] from top to bottom.

[17:21] So for clients, that means the sale operates independently, but with access to things

[17:25] like JLL's expansive research resources, business support services, whether it's HR, technology,

[17:31] et cetera, and even its value sheet, as demonstrated by JLL's investment alongside your investments

[17:36] in our Value-Ad Fund series.

[17:38] So with that quick overview on the sale and our platform, unless there are any questions,

[17:43] on all two things over to Jeff.

[17:46] Thank you, Chadwick.

[17:47] Good morning.

[17:48] I just wanted to thank the board for the opportunity

[17:51] to present this morning.

[17:52] I also want to thank Dan, your team,

[17:56] and NEPC who really continue to be excellent partners

[17:59] and a pleasure to work with.

[18:02] If we could put two slide six please.

[18:05] I'm going to spend the next few minutes talking through

[18:08] and providing an update on the two value ad funds

[18:11] that BCERA is invested in, fund 8 and fund 9.

[18:15] As Dan mentioned, fund 8 is a 2019 vintage fund.

[18:18] It was primarily invested during 2020 through 2022,

[18:23] and fund 9 is a 2023 vintage fund.

[18:26] It's currently a little bit under 50% invested

[18:29] and is still within its investment period.

[18:32] Both of these strategies and funds are closed-end

[18:35] and focused on value ad.

[18:37] And as Dan mentioned, unlike a core strategy

[18:40] which primarily focuses on acquiring stabilized assets, these two funds really focus on investing

[18:45] in high quality but unstable as properties that will generally appeal to investors with

[18:51] a lower cost of capital like a core investor when it's time to sell and it typically takes some

[18:56] time to extract the value from these types of properties that were invested in. So turning to the

[19:03] Next slide, we'll first dive into fund eight.

[19:06] So fund eight is an $832 million fund.

[19:10] It's fully committed and we've called 93% of its capital.

[19:15] The portfolio had 35 investments at its peak.

[19:18] And we've since sold 10 that have generated

[19:22] approximately a 20% net higher up.

[19:24] And have also returned about a quarter

[19:27] of your committed capital through this process

[19:30] of selling those assets.

[19:33] Turning to slide 8, the funds investment period ended about 2.5 years ago.

[19:38] We're now in the process of executing our business plans

[19:41] and have really been focused on stabilizing and leasing

[19:46] the transitional assets that we have in our portfolio

[19:49] and then we'll be looking to choose the optimal time for selling those properties.

[19:55] On slide 9, you can see our current portfolio is about 86% invested

[20:00] in residential and logistics based on total capitalization,

[20:05] and the balance sits in two lab investments that are in Boston and Philadelphia.

[20:10] Our average investment was about 3% of total commitments.

[20:15] You'll also notice that about two thirds of the portfolio consists of operating assets,

[20:20] or properties that really have very little value ad work remaining.

[20:25] We continue to make progress stabilizing portfolio assets,

[20:28] that's which is why that percentage continues to tilt iron higher.

[20:34] Within residential and logistics, we own properties that are considered traditional property types,

[20:40] such as class B apartments, but have also invested in some subsectors,

[20:45] such as manufactured housing, single-family rental, and active adult,

[20:49] which is really geared towards residents that are 55 and older.

[20:54] And these subsectors have proven in many cases to perform similarly,

[20:58] If not better, then the more conventional typical traditional formats.

[21:05] The last couple of years have definitely been challenging in our space on the macro front

[21:08] as interest rates have got up and operating fundamentals in a lot of areas have slowed

[21:13] down, although unevenly.

[21:15] Solar operating fundamentals have impacted the amount of time it has taken to stabilize

[21:20] some of our assets, and also on the capital market side, higher rates, and higher cap rates

[21:25] have led to some volatility and below average sales volumes.

[21:30] So as a result, we're being selective in deciding when to sell our assets with an eye both

[21:35] towards maximizing profits, but also maximizing returns.

[21:40] The funds life extends until the middle of 2028, or if extended the middle of 2029.

[21:48] So we do the benefit of time for the current cycle to develop, which we believe, conjunction

[21:53] with continuing to complete our business plans,

[21:57] we'll better position the fund to optimize

[21:59] investment performance when we sell.

[22:03] Turning to slide 10,

[22:05] we've been very disciplined

[22:06] about where we've invested,

[22:08] and we've focused our residential investments

[22:10] in markets with growing employment

[22:12] and population,

[22:14] and have also concentrated our logistics investments

[22:17] in key nodes in major markets.

[22:20] We believe fund eight owns

[22:22] a high quality portfolio of assets

[22:23] that are largely in the sectors, the sub-sectors in the market,

[22:28] which are primarily coastal and growth-oriented,

[22:31] that core and core-plus investors want to own long-term.

[22:36] And this is really important because as short-term investors and holders,

[22:41] we're very focused on our exit and take-out.

[22:45] Turning to slide 11.

[22:48] This summarizes, there's a lot of text on this slide,

[22:51] but this summarizes our remaining portfolio.

[22:55] As you can see, most of the heaviest business plan risk

[22:58] as I talked about a few minutes ago is behind us

[23:01] as we make progress stabilizing our assets

[23:03] and they begin to generate cash flow.

[23:07] Turning to slide 12.

[23:10] Wanna share a couple of updates across our portfolio.

[23:13] First, the Real Estate.Markets have continued to improve

[23:17] and we've been taking full advantage of this.

[23:20] We completed five refinancings over the past year and then doing so we reduced our spreads

[23:26] on those assets by approximately 75 basis points and we also added three years of term.

[23:33] We also completed the loan restructuring for the fund's largest life science exposure,

[23:39] which is a building that's in Fenway right across from Fenway Park in Boston, it's the

[23:45] building that has the sick go sign on top of it.

[23:47] But this restructured loan will give us a lot more time to finish stabilizing and leasing

[23:53] up the property.

[23:56] On the top right is a photo of a manufactured home community that we're developing in Fort

[24:02] Worth, Texas, and here we've really continued to see strong demand as we sell individual

[24:08] homes to residents who then lease their sites back from us.

[24:13] And the project is now 38% occupied and it's continuing to climb.

[24:20] And finally on the bottom right is one of our active adult projects.

[24:23] This is called Sage Plum Creek, it's in Kyle, Texas, which is south of Austin.

[24:29] We own three active adult properties that we developed in this portfolio and these are really

[24:34] all geared towards 55 and older residents.

[24:38] and here really across all three properties we've been making really strong

[24:45] progress leasing them up they've all hit 85% or higher on the occupancy front

[24:50] and we expect to get them into the low to mid-90s this year.

[24:58] Now turning to slide

[24:59] 13. I want to spend a couple of minutes on Fund 9. The Fund's final close was

[25:06] about a year ago, and we're still in the middle of its investment period. We've called

[25:11] approximately 15% of the funds capital thus far, and have committed a little bit under

[25:17] 50%. Over the past year, we've committed approximately 30% of the funds capital.

[25:24] In total, we've made about 20 investments spread across logistics, residential, and healthcare,

[25:31] which is really met at the law office in this case and we've been making really good progress on executing our business plans for the assets that we purchased.

[25:41] Moving to slide 14, the funds investment period ends in a little bit over a year, though it can be extended for an additional 12 months as needed and the funds life stretches into 2032 or 2033 extended.

[25:59] Turning to slide 15, we continue to anticipate building a portfolio that's going to be tilted

[26:07] heavily towards logistics and residential, though it may include some smaller exposures

[26:12] to other sectors of pricing is interesting, such as healthcare. To date, about two-thirds

[26:18] of our investments are logistics oriented, but we do expect this tilt to come down as we continue

[26:24] need to commit the rest of the fund.

[26:27] We've been very disciplined in our deployment thus far,

[26:30] and have been very selective with our capital.

[26:34] As I mentioned with fund eight,

[26:35] we've been navigating a challenging macro environment

[26:38] with a capital markets landscape that's still

[26:40] adjusting to the current rate and cap rate environment.

[26:45] This is caused transaction reliance to be below average.

[26:49] And in some cases has created a gap in pricing

[26:52] between what sellers expect and also what buyers want to pay.

[26:57] And we think that that will continue to persist in several cases.

[27:01] We've also been seeing operating fundamentals in certain areas cool off from their peaks.

[27:07] And all of this combined is very meaningful when you're investing for a relatively short term,

[27:13] whole period, like we are.

[27:15] So all of this being said, we do continue though to see some really interesting opportunities

[27:20] and our focus on making investments with the right balance of risk reward, and we'll

[27:25] also pay in close attention to the quality of the real estate, our pricing, and where

[27:31] that sits relative to construction costs to replace that property.

[27:37] And we do like to find opportunities with some in-place cashflow when we can find them,

[27:41] and when that's available.

[27:42] So you could risk mid-again.

[27:45] Turning to slide 16.

[27:48] The portfolio that we own to date consists of assets that are situated in primary or secondary

[27:54] major markets, and as you can see, are geographically diversified.

[28:00] The majority of our assets are in very dense, in fill locations as well as fewer to zoom

[28:06] in and look at their microlocations.

[28:10] Turning to slide 17, the portfolio we put together so far includes a mix of asset types

[28:16] and business plans. On the residential side, we've made a preferred equity investment on a new

[28:22] apartment project in an A school district in New Jersey and have also purchased a newly built

[28:29] 90% lease apartment project in Northern Atlanta that we purchased below and it would cost to build

[28:35] that asset today. Within logistics, we've invested in a broad cross-sectional strategies.

[28:44] We've been assembling, as we talked about last year, an industrial outdoor storage portfolio.

[28:50] We purchased a property that was also recently built, but at a good basis, and

[28:55] which still has about 40% to lease out.

[28:58] We have two well-located development projects underway, one is in Charlotte, one is in Houston.

[29:06] And we finally purchased a few in fill, very well-located industrial

[29:13] properties that we call shallow bay properties.

[29:17] And finally, within healthcare, we've acquired a 55% lease property in Gilbert, Arizona,

[29:24] which is in the Phoenix metro area.

[29:27] It's located right across the highway from a top-ranked hospital in that market,

[29:34] and we're in the process of finishing the conversion of that property into a medical office property.

[29:40] Okay.

[29:42] Turning to slide 18. Here are some maps in terms of slide 18, please.

[29:53] Thank you.

[29:54] Here are maps and photos of the two residential assets that we've invested in.

[30:00] The first one up top is outside of Philadelphia, and the second one is in Northern Atlanta. On

[30:07] the slide 19. So on the industrial assets that we purchased so far, three of them happened

[30:12] to be in Charlotte, which is a market that we like quite a bit, although the strategy and

[30:17] business plan for each of these assets is quite different. The top asset is the building

[30:22] I mentioned before that has remaining lease up. The second is a development project located

[30:28] located in an A location in one of the best industrial cell markets in Charlotte.

[30:35] And the third property is an infill shallow bay property, the CARES 2, a number of different

[30:42] tenants.

[30:45] And then finally on slide 20, this is a snapshot of the medical office property that we acquired

[30:51] in Phoenix.

[30:53] And here you can see the map, the picture, and across the way.

[30:58] you can see the close proximity to the major health system.

[31:03] So with that, I wanted to thank you for your time this morning.

[31:06] We are and remain very focused on optimizing the value of our

[31:11] fundate portfolio and driving value as we stabilize the

[31:15] transitional assets in that portfolio and patiently time our

[31:19] sales. And for fund nine, we remain really excited about

[31:23] the portfolio that we put together and about the

[31:26] opportunity set that's ahead of us. Dislocation and changes in fundamentals like we have been seeing

[31:32] tend to create some of the most interesting opportunities in our space. And while the

[31:38] markets reset a bit more slowly than certainly we'd hoped, we are continuing to see a growing

[31:44] number of interesting opportunities and pricing that's attractive within the markets and the sectors

[31:50] that we are targeting.

[31:52] So with that, I'm happy to answer any questions.

[31:58] Thank you. Any board member question or comments?

[32:02] If not, can I get a motion?

[32:07] I'll move we will see you in file.

[32:08] Thank you, Art.

[32:09] I'll second.

[32:11] Thank you, Taylor.

[32:34] Motion passes. Thank you, Chadwick and Jeffrey.

[32:37] On to the second item, which is the annual investment presentation

[32:41] of PGM Real Estate and on to you, Dan.

[32:44] Thank you.

[32:47] A Sarah contributed about 60 million to PGM's core fund in 2005, but the value grown

[32:55] up to about 182 million as of December 31st.

[32:59] As I noted a little bit earlier, the PGM's price of fund is a core strategy and invests

[33:07] in fully stabilized income-producing properties using an open-ended fund structure.

[33:12] As a core fund, core funds are typically looked at and compares into what they call the

[33:19] Odyssey universe, which is the universe's comprised of the biggest core funds out

[33:24] there.

[33:24] I think there's 26 funds in it, and PGM guys can correct me on that number.

[33:29] PGM, the PGM's fund, the price of fund I think is about the ranked about the top third

[33:35] in size and scope within that entire universe.

[33:40] Core funds are designed to take less risk, and thus lower expected returns than riskier

[33:45] value add or opportunistic strategies over the long term, but PGM has done very well.

[33:51] Now I'll turn it over to PGM's core fund director of business development, Steve Moan,

[33:56] who will then introduce the funds and the portfolio managers online, which are James Glenn and

[34:01] Lexi Wolf.

[34:03] With that, Steve.

[34:04] Thank you, Dan. And thank you all for having us today. I'm joined by, as

[34:11] Dan mentioned, James Glenn and Lexi Wolfe from the Prisa Portfolio Management

[34:15] team, as well as my colleagues Simone Nelson on our business development team.

[34:21] Since we saw you a year ago, things have been very stable at PGM as a platform and with

[34:27] the real estate and Prisa team, no changes on the team to note. So we can spend our

[34:31] time today, I'm really digging in and update on the fondness performance.

[34:36] Before I turn it over to James and Lexi, I just wanted to skip ahead to slide nine

[34:42] if we could, which shows Ventura County's capital account statement in effect.

[34:48] This shows the original contributions. We've seen this in the past of 60 million back in 2005.

[34:54] Thank you for your trust with us for the past 21 years now.

[34:57] and also just shows activity from income and appreciation over that time period with the current

[35:04] NAV of a little over $182 million. Importantly that just to remind everyone the performance figures

[35:11] you see on the right here are showing Ventura County's specific dollar weighted returns or IRRs.

[35:19] And those account for any cash flows from additional contributions with draws as well as decisions

[35:25] on whether to have dividends that are paid quarterly by the fund, either paid out or re-invested

[35:30] in the funds. Those are specific to Ventura County. We have compared those here against

[35:35] the Odyssey Index, but just as a reminder, the Odyssey Index and benchmarks in general are

[35:41] time-weighted returns, and it's assumed that dividends are re-invested in other kind of changes

[35:49] in contributions of which are all from that universe. So not exactly apples to apples,

[35:54] but as Ventura County's contributions have remained relatively consistent over recent years,

[36:00] they are fairly applicable and incomparable here, so we've shown that just for comparison sake,

[36:06] and as you can see on the bottom right, Ventura County is currently having its dividends distributed

[36:12] to the plan. So we'll get more into the reasons for what you see in the one year and other periods

[36:20] here of Priests' recent strong out performance and I'll let Lexi and James take it from here.

[36:28] Okay, great. Thanks, Steve. Good morning, everybody. Can you hear me okay?

[36:34] Just want to make sure. Yes, yes. Okay, thank you. We've had a bit of a snow storm in the northeast

[36:41] over the last day or two, so I'm in my home office. It doesn't seem like that impacted you,

[36:48] which is nice. Let's start. I'll just put our comments in a little bit of

[36:55] context by spending a moment just on the market more broadly. So if we could

[37:00] turn to page seven, I'm not going to go into all these bullet points, but I'll

[37:04] just give you know, a brief perspective. You know, at this point, we went through

[37:10] a couple of years or more of repricing, you know, in response to higher

[37:16] interest rates and inflation. And we've been, I think, in a kind of stable environment for the

[37:23] past year, starting to see values grow again, really all driven by income growth. So in terms

[37:32] of cap rates and discount rates and the metrics the appraisers use, those have pretty much

[37:38] stable. And with, with cap rates, you know, around the 5% mark and discount rates, you know,

[37:45] north of seven, I think the prazers are comfortable where those lie in the context of, you know,

[37:52] where interest rates are today. And so what we're starting to see now is modest appreciation.

[37:59] Again, you know, more driven by growing the income of the properties. And we expect that to

[38:05] continue and actually improve going forward.

[38:09] So our view is that it's a decent time for long-term investors to be in the core space.

[38:17] We think you're going to start seeing more normalized returns for core.

[38:23] Dan mentioned it's more of an income driven return profile with inflationary type appreciation.

[38:30] So we think we're going to move from the kind of mid-single digit to overturn rates we're seeing now and probably start getting more like high single digit rates of return as the income growth improves.

[38:46] And there's a couple of reasons why one is supply and demand balances are more or less in shock. There's some differences across markets and property types.

[38:56] But for the most part, we're seeing supply pipelines have receded.

[39:01] The demand side is decent, we're even seeing recovery in office now.

[39:08] And then there's some pockets of strength like the retail market is strong, some of the

[39:12] alternative housing sectors we've been investing in are doing very well.

[39:18] And then some of the sectors that we're struggling like office has started to turn the corner

[39:23] and we're actually seeing some strength in some of the key markets.

[39:25] like New York City. So that's kind of a backdrop we'll get into the fund in

[39:32] more detail and comment on, you know, some of the sectors in more detail.

[39:36] But any questions on that, or we'll move forward if done.

[39:45] No questions, okay.

[39:46] Great. Steve covered nine. Let's jump to 10 please.

[39:55] So, you know, much like

[39:56] the platform that the team has been very stable. There really hasn't been any changes

[40:02] at all in recent years. I've been working alongside Joanna now for coming up on a dozen

[40:09] years on the fund. And with the platform, Lexi has also been with us for 15 years total

[40:18] most of that on Prisa. Kay Murray is out in San Francisco. She's our West Coast representative

[40:24] been with the fund and platform for a handful of years, and then Clay

[40:28] Clements is also with us in New Jersey. And of course, we have a dedicated

[40:34] analytics team and then leverage the full resources of the PGM, real estate

[40:39] platform, 75 asset managers over 50 transactions, professionals and a large

[40:45] research team.

[40:49] Let's go forward to 11, please.

[40:53] So during this period of change with the reprising and now what's been a fairly modest recovery

[41:02] to date, we've continued to drive the fund's strategy and deliver pretty healthy outperformance

[41:09] that's been pre-notable in the recent time periods and then consistently over the longer-term

[41:15] time series and really coming into the repricing period in mid-2022, we had the fund position

[41:24] with a lower risk positioning, so lower debt levels, a very healthy balance sheet, and

[41:32] that not only allowed us to weather the storm a bit better than average, it also allowed

[41:39] us.

[41:40] and what's changed, I'd say, in the last year or 18 months

[41:42] is we've kind of gone more on the offense.

[41:45] So Lexi will touch on transactions in more detail,

[41:48] but we've shifted and pivoted and taken advantage

[41:52] of some of the opportunities we've seen in the market

[41:55] in the last year or two.

[41:58] And we've been able to do that because our leverage was lower.

[42:02] We didn't have any major obligations to fund.

[42:06] And so we've been much more active investing

[42:09] and we've taken the opportunity to normalize our leverage levels as a result.

[42:15] So we've used some debt capital, we're going to be probably in line with the benchmark

[42:20] when we get the Q4 numbers in a couple of weeks, and we're okay with that.

[42:26] We've used debt to be accretive again to long-term returns, and then we've seen the investing

[42:32] we've done be quite accretive to perform it.

[42:36] So, on average, the investments we've made in the last 18 months or so are up over

[42:42] cost of 14 percent.

[42:44] So, they've been, you know, a creative investment for the fund.

[42:46] They've also helped us, you know, move the fund's strategy and Lexi will talk about that

[42:52] in a second.

[42:54] You know, on the flip side, we've continued to sell non-strategic assets.

[42:58] We're always trying to upgrade the quality of the portfolio and we've been, you know,

[43:03] very active in doing that.

[43:05] we sold some office buildings and some non-strategic apartments and retail and industrial and we've

[43:12] re-invested that capital into investments we think will outperform going forward. And then finally,

[43:19] I kind of mentioned in the market overview, we do think NOI growth for 2026 and beyond, we do

[43:25] expect some acceleration. We're budgeting about 4% growth for the year and we do think that will help

[43:34] drive a little higher appreciation and in-turn total returns.

[43:41] Okay, I'll move forward.

[43:43] Next page provides a snapshot of fair amount of data here.

[43:48] So at $30 billion, Dan touched on it.

[43:52] We are the third largest fund in the Odyssey core benchmark.

[43:56] There's 25 funds, a couple hundred billion of equity capital.

[44:03] And we do think that's an advantage because we think

[44:05] we can obviously diversify the fund well but also own high quality buildings and some of the

[44:11] larger markets where some of the smaller funds that that's tricky to do. We're 92% least

[44:19] pretty healthy in that respect. The leverage level again is as well below, third quarter was 25 and

[44:26] a half, fourth quarter. This book is all Q3 because we sent it in no bit early. We don't have the final

[44:34] final reports for Q4, but most of the data is in. Our leverage moved up into the 26,

[44:42] high 26 percent range in Q4 well below our 35 percent maximum.

[44:50] As I said, we've been busy investing, so we had another active quarter in Q4, and for the year,

[44:57] We ended up...

[45:00] $2.4 billion of new investments, so that's more of a normal year for us, maybe a little bit above average, and again, taking advantage of opportunities we're seeing in the market right now. For sales, we ended up closing for 2025 1.1 billion, so that was about a 40% increase over the previous year, so saw some more liquidity there. And then finally, in terms of contributions,

[45:28] We also saw pickup in the 4th quarter.

[45:31] We had about 500 million come into the fund, finished the year on a strong note.

[45:38] And then for 2025, we drew an over 900 million of capital.

[45:44] So starting to see that turn, but starting to see flows come back into the core space,

[45:50] and I do expect that to continue.

[45:53] In terms of redemption, we made a large redemption payment in Q4.

[45:58] just under $500 million and that brought our redemption queue down to just under $1.5 billion.

[46:09] And so that's over 60% below peak.

[46:13] It represents about 6% of our NAV. The Odyssey average is about double that.

[46:19] So, you know, while the queue is still there, we're making good progress.

[46:23] Our hope is to extinguish the execute in 2026.

[46:29] And again, it's well below average for Odyssey.

[46:35] Next page, 13.

[46:37] Just touching on returns.

[46:39] These are net time-weight returns for pre-set on the benchmark.

[46:46] We've had a very healthy last year or so.

[46:51] I think a lot of that's coming from the funds positioning.

[46:53] Our retail portfolio is doing very well.

[46:57] some of the alternative housing that Lexi will talk about is doing well.

[47:02] And we've had outperformance over 200 basis points versus Odyssey.

[47:07] And then when you look at the longer term time series, it's pretty consistent theme.

[47:12] We've managed to deliver out performance in the kind of 30 to 75 basis point range

[47:17] in all these key time periods.

[47:23] The next page looks a little more closely at some of the drivers

[47:28] and so these are unlevered property type returns

[47:32] for the quarter of Q3 in this case and the trailing year.

[47:37] And pretty decent strength everywhere.

[47:41] So there's really not many places that values are still falling.

[47:44] The one exception is Life Science Lab.

[47:48] We have less than 2% of the front in that space.

[47:52] It's been a long-term outperformer, but there's been some challenges

[47:56] is in terms of both supply and demand, but we can touch on, but that's really the last

[48:01] remaining place, like a negative value growth at this stage. Even office has turned, we've

[48:09] seen a couple quarters of positive appreciation. And then you see some areas of very strong

[48:15] return. So retail, you know, almost 10% return in the last year. So the alternative housing

[48:21] sector, senior housing, manufactured housing, also double digit returns, and you're seeing

[48:25] strength there.

[48:29] With that, I will turn it to Lexi to talk a little bit more detail about

[48:32] property type strategy alternatives and transactions. Great. Thanks James if we can move ahead to

[48:40] the next slide.

[48:46] So we're always actively managing process property type exposures and I think when

[48:51] we look across the board today we're very comfortable with our allocations and what we really like

[48:56] is about 85% of the fund is invested in our high conviction property types so

[49:01] that includes industrial, residential, alternatives, housing, and grocery

[49:06] anchor retail. I think when you look across the board here likely the biggest

[49:12] shifts that you'll see in the near term is in traditional office. We've brought

[49:17] that down quite a bit. We like that we're below 13%. We like our underweight

[49:22] today, but we'd like to bring that down a little bit more into call at the 10% range or so.

[49:28] And we think that that's achievable. In the near term, we've been successful in selling

[49:33] some office buildings and we'll see growth in other areas of fund. I think the other place

[49:39] where you'll see a shift in our allocations is here on the alternative property types. You'll

[49:44] see that we're targeting about a 20 to 25% exposure overall. I'll talk about a little bit more on

[49:50] the next slide on how we intend to get there but that's been an area we've been actively investing

[49:56] in as James alluded to and these are three Q numbers. So in the fourth quarter again we were

[50:01] active investing in alternatives and that numbers come a little bit closer to 17%. So again I'll

[50:07] go through the alternatives on in a little bit more detail on the next slide. Then I think when

[50:12] you look at industrial apartment and retail in general, pretty comfortable with our allocations there,

[50:20] I think what you'll continue to see from us is active upgrading.

[50:24] So selling some of our older assets that may have maximized value and replacing that

[50:30] with newer and stronger assets through our acquisitions activities.

[50:34] So that includes a mix of existing assets that were able to acquire attractive price points

[50:40] along with continuing our bill to core program in these property types.

[50:47] So I think if we go to the next slide, just talking about the alternatives a little bit

[50:52] more, many of you are probably familiar with the fact that Prisa has been investing in

[50:58] alternative property types for a long time, over 20 years, anchors for that alternative

[51:04] portfolio today, our self-sourage and life sciences, but what we've been focused on investing

[51:10] a bit more recently is more of the housing alternatives.

[51:15] So manufactured housing, senior housing, and single-family rental.

[51:19] And today those property types represent about 4.5% of the funds.

[51:24] So really our goal in getting to that 20 to 25% exposure that I mentioned is effectively

[51:31] doubling our exposure to the alternative property types in the housing segment.

[51:37] So I think talking about those in a little bit more detail, manufactured housing, we started

[51:43] investing there back in 2021, really leveraging the experience of our platform, our value

[51:49] ad fund, it started investing there in 2017, that's been a very successful investment.

[51:56] We started our second programmatic joint venture about a year ago.

[52:01] We acquired a large 14-asset portfolio in the fourth quarter, so that's what helped

[52:06] to boost our alternative's allocation overall, and now today we own over 30 assets across

[52:13] the country and that manufactured housing allocations over 3% at the end of the fourth quarter.

[52:20] Senior housing is another property type where we've really been able to leverage the track

[52:25] record and experience of our program.

[52:27] We have a senior housing team that's been investing in the space since 1998, so the better part of the 27 plus your track record in that space that we've been able to leverage since we made our first investment in 2021.

[52:42] We acquired our seventh community in the third quarter, and so we did that alongside an operator that we have a very long track record and experience with.

[52:55] single-family rentals. This is a smaller allocation that we have today. We own two communities

[53:01] and part of the third. Recognize this is a property type that has been in the press

[53:07] recently with the current administration. And so what I'd say about the profile of our

[53:12] single-family rental exposure, those three communities that I mentioned are all new development.

[53:18] So we are mostly focused in a build-for-rent space and so we're adding to the housing stock.

[53:23] We're not competing with individual buyers on the MLS, which is where the current administration has been focused.

[53:29] Our pace overall in terms of single-family rentals has been slow and measured.

[53:35] And we think that that's been prudent as we continue to learn about the space.

[53:40] And overall, we are seeing more compelling risk-adjusted returns elsewhere,

[53:43] manufactured housing and senior housing as James alluded to.

[53:47] But at the end of the day when we look at single-family rentals,

[53:51] It's a large segment of the space that we like longer term.

[53:54] So in the near term, we'll largely continue to monitor the space especially on the regulatory

[54:01] side.

[54:03] Then I think the last piece here is data centers.

[54:07] This is a space we wanted to re-enter for some time, but we wanted to be thoughtful about

[54:13] the execution when we did re-enter that data center space.

[54:16] And what we've really learned about data centers over the years and what we've observed is the demand of shifting more towards

[54:23] hyperscale type facilities.

[54:26] But the challenge with that is they're very large investments.

[54:29] And we wanted to ensure that we had the appropriate levels of diversification within our data center exposure.

[54:36] So what we were able to structure is a co-investment alongside PGM's global data center fund for investments in the US.

[54:45] And we actually close on our first co-investment during the fourth quarter.

[54:50] So on our fourth quarter of materials, you'll now see that as a current investment in the fund.

[54:56] So I think all of these are very good examples of how we've leveraged the expertise of our platform,

[55:03] our relationships in order to execute efficiently in these property types.

[55:08] So

[55:11] if we go to the next slide, here we'll talk a little bit more about our acquisitions

[55:17] activity.

[55:18] As James mentioned, we have shifted to the offense in recent years in 2022 during the

[55:25] repricing environment.

[55:27] We have very limited deal activity and we really started investing again towards the end of 2023.

[55:33] And what we really saw in 2024 and in 2025 is a lot of buyers continue to be on the

[55:41] sidelines. And that created a lot of compelling investment opportunities for us. These are

[55:47] deals that are very much in line with our strategy. And as James said, the deals that we've

[55:53] done since late 2023 on average are valued about 14 percent above cost over relatively short

[56:01] pull periods. So we feel very good about those investments and that entry point. The other place

[56:08] where we've been active is rebuilding our build-to-core pipeline. We effectively went on

[56:15] pause with build-to-core development as we saw elevated supply in a number of markets but we believe

[56:21] now is the time to start new construction because we'll be able to deliver new product as those existing

[56:27] supply pipelines are absorbed. So we've started new projects in apartments,

[56:33] industrial, and we expect they'll be delivering again at the right time. So

[56:39] going forward, we continue to have a large pipeline with optionality, all deals

[56:46] in line with our strategy. So that includes some of these alternative housing

[56:49] programs that I mentioned, other built-up for developments, and we continue to

[56:54] evaluates and we'll move ahead at the right time.

[57:00] So, if we can go to the next slide,

[57:03] here we'll just wrap quickly on debt.

[57:05] I think this James prefaced a little bit earlier.

[57:08] Our third quarter leverage is at about 25 and a half percent.

[57:12] That's below the Odyssey Benchmark

[57:14] and that was really intentional,

[57:16] just given the broader uncertainty in the market

[57:18] over the last couple of years.

[57:20] But now that debt is a creative again

[57:22] and we're seeing broader debt availability.

[57:24] Our plan was to move that leverage to more normalize levels closer to the benchmark,

[57:29] and as James said in the fourth quarter, our LTV ended in the higher 26% range.

[57:37] I think looking ahead at our maturity schedule overall, our maturity schedule is attractive.

[57:45] 2025 was a very strong year in terms of debt execution with respect to the fund,

[57:49] and that does include extending three large office loans with minimal to no paydown at favorable rates.

[57:57] I'd say the other place that we were active in 2025 is getting ahead of some of our 26 and 27 maturities.

[58:04] So we were able to address over 40% of those maturities to get to the maturities schedule you see today.

[58:11] Okay, and when we look at the maturities in 26 and 27, in general, these are assets that

[58:17] have modest leverage and roughly the 50 percent range, so we don't have major concerns

[58:22] in terms of our ability to extend or refinance those loans.

[58:27] So overall, we feel the debt for Prusa is well positioned going forward.

[58:36] I think that's the end of our prepared remarks.

[58:39] If anyone has any questions on anything that we've covered today.

[58:45] Thank you, Lexi. Any board number question or comments?

[58:47] Yeah.

[58:50] In your alternatives, you had the single family rentals.

[58:56] Do you construct them or do you buy them?

[59:00] So it's a little bit of a mix of both.

[59:03] We are not the developers there, but we've partnered with the developers

[59:07] to acquire those homes. So we are adding to the supply.

[59:13] Now, the president and at least one of the candidates for Governor and California have suggested that the acquisition of single family housing by cooperation should be prohibited. How does that fit into your plans?

[59:31] So our understanding is really where the administration has been focused, is competing directly with buyers on the MLS for existing homes.

[59:42] That's not a strategy. We're really pursuing what we're focused on is the creation of new housing supply, which is independent from again competing directly with the homeowners or the home buyers on the MLS.

[59:59] Thank you.

[1:00:00] Mr. Chair. Yes. First of all, thank you very much. I thought that was an excellent presentation. And I'm just curious. I think it was on slide 16, which when you talked about the alternative investments. But you also said that one of the strategies is that you have been selling some older assets and replacing them with newer, newer ones. And I'm wondering if, if that goes across the board in all segments or are some segments, particularly

[1:00:31] old and the world has changed. I'm just wondering where are the older assets

[1:00:40] that you're selling? Sure. So probably the better place to look is slide 15. I

[1:00:47] say for the alternatives is we're adding newer exposure there that's

[1:00:51] probably less of a focus. And I think where we've really been active in that

[1:00:56] that upgrade strategy has been industrial apartment and retail.

[1:01:01] So for example, in retail this year, we sold some 20 plus year old retail centers that

[1:01:08] didn't have a grocer, and we reinvested those proceeds into new Whole Foods anchor developments

[1:01:14] that are largely released.

[1:01:17] So I think that's a really good example of where we've been able to sell what we would call

[1:01:22] more of a lively retail asset, you don't get the benefit of the grocer and replacing those

[1:01:27] proceeds into higher growth opportunities going forward. On the apartment side, I think

[1:01:32] where you're seeing some of that is maybe older product that might require a renovation strategy

[1:01:38] that isn't necessarily your creative or locations that may be less out of favor and replacing that

[1:01:44] exposure with some of our new bill to core developments that I address. Industrial, similar vein,

[1:01:51] older product that we might be able to replace your bill to port development or stronger locations that we've been targeting.

[1:01:57] So I think those are really the property types for you're going to see as active with that strategy.

[1:02:02] Thank you so much.

[1:02:03] Yeah.

[1:02:05] Thank you, any other questions?

[1:02:07] If not, can I get a motion?

[1:02:10] Oregon moves.

[1:02:11] Congratulations.

[1:02:12] Thank you.

[1:02:16] Thank you.

[1:02:17] Thank you.

[1:02:18] Thank you.

[1:02:19] Thanks all.

[1:02:20] All

[1:02:38] right,

[1:02:45] motion passes. Thank you again, Steve, Joanna, James, and Lexi.

[1:02:50] We're going to take a 10-minute break and we'll get into the second part of this, so

[1:02:55] we'll be back at 10 o'clock.

[1:03:18] Then the committee

[1:14:29] are proposing that the path forward for PAS modernization be Vitex velocity

[1:14:33] entity system and next steps are to enter contract negotiations with Vitec and bring back

[1:14:38] a proposed contract for the committee review and for board approval.

[1:14:45] In addition, staff will analyze what additional consulting and our staff resources may be

[1:14:50] needed to support this project and staff are happy to answer any questions on this item.

[1:15:00] At one point, Leah mentioned that if we went to velocity, we would not have to pay somebody

[1:15:09] else to host the data. Is that the case?

[1:15:17] Vitech would still be hosting the velocity solution, instead of being currently we are

[1:15:27] in their hosting environment by moving to a SaaS provider. We are essentially moving

[1:15:32] into Vitech's cloud. So in this instance, they use Amazon Web Services. So our environment

[1:15:40] would be hosted in Amazon Web Services more so than a physical data center on the

[1:15:45] East Coast. So it's more robust and redundant having different geographical locations for

[1:15:55] support and consistency with uptime. But we won't have a shepherd contract for hosting.

[1:16:02] Correct. It would all be under one contract. Yeah. That's correct. That extra VSG hosting contract

[1:16:09] then goes away and then we pay for essentially the hosting gets paid for through the SaaS subscription.

[1:16:15] and a better hosting.

[1:16:20] I'm supportive of the recommendation

[1:16:22] for the reasons stated, simplicity,

[1:16:28] continuity, all those things.

[1:16:31] So I think it's a good idea to go that way.

[1:16:37] I have a question or a comment.

[1:16:40] I appreciate the committee's work on this

[1:16:43] and staff's work on this.

[1:16:44] This is great.

[1:16:45] And these are tedious things to have to do.

[1:16:48] so thank you all. And I too am supportive of the recommendation, but I just wanted to make

[1:16:54] a comment or perhaps it's a question. I know the end of life for V3 is July 11th, 2028,

[1:17:01] which is more than 20 months from now. And I know that the estimated time at this moment is maybe

[1:17:08] a 20-month cycle. But we also are very well aware of these kinds of projects and how sometimes

[1:17:18] they might take longer than they think. So my tech has said that they will keep V3 operational

[1:17:31] until the upgrade is complete, which is a great thing. And the only thing I'm wondering

[1:17:36] is if the upgrade isn't completed by the end of life and they are not supporting and they're

[1:17:48] how they're going to do that.

[1:17:53] Vitech did state that they would keep

[1:17:56] be through operational.

[1:17:58] They're very committed to moving off this environment

[1:18:03] that they have right now because for my understanding,

[1:18:07] is it is costing them a lot to keep this up.

[1:18:10] So there is driver behind the fact to keep,

[1:18:13] to move us to the new environment.

[1:18:16] At a certain point, if we were to upgrade,

[1:18:20] we would not be making any significant changes to the software, it would basically just be maintaining what we had up so ensuring that things are functional and can still be used until we can move into this new environment.

[1:18:35] So if they weren't able to get us live by the time our goal live date for velocity was our end of life for B3 would be they they would have to keep that environment up or

[1:18:47] figure another way to move us off the VSG hosting environment into maybe a different

[1:18:53] environment in their cloud still being able to run B3. So there are options, but I think

[1:19:00] it is in Vitex best interest that they would want to proceed to move us off timely for their

[1:19:07] own purposes as well. Thank you and obviously we're better off to go with Vitex in this case

[1:19:15] for all the reasons that you stated, but I do wonder if that commitment of theirs is

[1:19:21] a bit hollow, so we'll see, but I still am in support of it.

[1:19:27] Thank you.

[1:19:28] On this item, have they transferred any other public pension administration systems?

[1:19:36] Do you know what their timeframes were with this crossover?

[1:19:41] All of the systems that are on the current version are within the B3 hosting environment.

[1:19:45] were given the same end of life date. So they have either starting a migration process or an

[1:19:52] upgrade process prior to finding out the end of life or are in the same vote as us. So they are

[1:20:00] working potentially with a number of different pension systems, insurance systems. It depends

[1:20:07] on who is on the hosting environment, but Vitec, we are aware of one system that is currently

[1:20:17] moving forward with velocity here in California, but they were already on the track to modernization

[1:20:24] before receiving the end of life notification. So, Vitec is progressing through upgrades and

[1:20:32] operations from old systems to new systems, they have a specified project team that they

[1:20:40] had been for B3 or the hosting environment because it would be decommissioned at that

[1:20:45] point.

[1:20:46] Okay.

[1:20:46] And do we know what the increase of that, what our costs are?

[1:20:53] Not entirely.

[1:20:54] Those are some points of negotiation that we want to discuss with Vitec.

[1:20:58] is usually when they add new, they also add more expenses, so I would just be cautious on that.

[1:21:03] Absolutely, thank you.

[1:21:05] Any other questions or comments, if not, can I get a motion?

[1:21:12] Horton will move for approval.

[1:21:14] Goulays, Shacken, thank you.

[1:21:32] Thank you, motion passes, thank you to the committee, and thank you, Taylor.

[1:21:37] We'll be into new business now.

[1:21:40] Item A is a pension administration system subscription renewal.

[1:21:43] Bless you.

[1:21:46] Okay,

[1:21:49] this item is a final subscription renewal for V3 for annual support and maintenance

[1:21:55] that will take us through the end of life date or before if we come up before.

[1:22:00] And then of course we have our chief technology officer Leah here to speak more on this item

[1:22:06] and answer any questions.

[1:22:08] Thank you, Amy.

[1:22:09] As Amy mentioned, this is the contract renewal for V3 itself, the software through the

[1:22:16] end of life of 2028. We will be bringing back to the board in the next few months the renewal

[1:22:22] for the BSG hosting contract to take us through to the end of life. It's not currently up for

[1:22:28] renewal until August. So right now we just have the B3 support contract.

[1:22:38] Any board member questions

[1:22:39] or comments? I just appreciate this information because that's reading our board. I was like,

[1:22:46] Okay, and where is the next contract?

[1:22:48] I want to understand that, so appreciate the sensitivity on that.

[1:22:55] There's no other questions or comments.

[1:22:57] Can I get a motion?

[1:23:01] I'll motion to approve.

[1:23:03] I'll second.

[1:23:04] Thank you.

[1:23:05] They

[1:23:16] always do that.

[1:23:17] Thank you, motion passes.

[1:23:20] Moving along to item B, request for addition of one

[1:23:23] new full-time equivalent staff position and any ticket.

[1:23:29] Okay, thank you.

[1:23:30] This agenda item is requesting the addition

[1:23:33] of a third benefit specialist to the disability unit at the program administrator three level to

[1:23:39] function in more of a lead analyst role. After the board's direction to review staffing needs in

[1:23:45] this area, we took a deeper dive in the end result was actually more of a like a qualitative rather

[1:23:52] than quantitative analysis. We did compare to other soil systems but what we found was not only

[1:24:00] Do we have a slightly higher case load per staff member than those other teams?

[1:24:07] The comparable systems also generally have at least one higher level staff member on

[1:24:11] the team, such as an analyst or a supervisor.

[1:24:15] In Missouri has some additional process steps that either don't exist at other soil systems

[1:24:19] or in those other soil systems, they're performed in other units, whereas we do them in the

[1:24:24] disability unit.

[1:24:26] So, the proposed solution to add the PA-3 will allow us to reorganize and rebalance the

[1:24:32] workload within the unit, so that some of the more complex tasks can be shifted or shared

[1:24:38] with the manager level, and this will also provide the opportunity to add some helpful steps

[1:24:44] such as additional member communications and implement some other process improvements.

[1:24:49] It will also allow for better and more consistent support back up and even succession planning.

[1:24:55] I did want to mention the use of this job classification is pending review by county HR,

[1:25:01] but we don't expect any hurdles in that regard.

[1:25:04] It is simply the next step in the existing series that we're already using.

[1:25:09] And then whether a budget adjustment is needed, we'll be reviewed during the mid-year budget

[1:25:13] projection, but due to the timing of the recruitment, if we were to proceed with this, we may only

[1:25:19] be looking at a few months of the year, which we may be able to absorb with other salary

[1:25:23] savings. And lastly I just want to quickly thank our chief operations officer Betsy and

[1:25:30] our disability manager Katrina for their help in the analysis and preparation of this

[1:25:33] request and staff are happy to answer any questions on this item. Any board member questions

[1:25:40] or comments? Sue? I just have a question. So this position is a county,

[1:25:50] it's under the

[1:25:53] Has put in a mandate that says no no new positions is this approved by the county so the no new positions freeze as for

[1:26:03] My understanding is for county departments and we're funded differently the Sarah's funded differently

[1:26:08] So we actually didn't even receive that freeze notice

[1:26:11] I knew about it

[1:26:13] Because others told me about it, but yeah, it doesn't actually apply to the Sarah

[1:26:17] Yeah, since I suggested that you look at adding a higher level position, I obviously

[1:26:26] have the support.

[1:26:29] And I'll make the motion to approve.

[1:26:32] Thank you, Art.

[1:26:45] Thank you.

[1:26:59] Thank you.

[1:27:07] All right, motion passes.

[1:27:08] Thank you, Amy.

[1:27:09] And thank you to all who worked on this.

[1:27:12] The next item, summary of recent changes to county management resolution and consideration

[1:27:21] I have a letter that's in there, essentially, and we've talked about this a little bit back in our last meeting.

[1:27:28] On December 16th, Board of Supervisors approved change to the management resolution.

[1:27:33] You'll see that there's a few items on their general salary increases which we have already addressed.

[1:27:39] Changes of flexible benefit allowance.

[1:27:42] And number three, adding a provision to provide dental and vision benefits at no cost to employees.

[1:27:48] An additional holiday, Caesar Travese Day, and the fifth item that increases the number of vacation hours that are employees are able to cash out.

[1:27:57] My suggestion is that we direct staff to return to the board with proposed amendments to the resolution that we have here that are similar to what the county just adopted with the effective dates to coincide.

[1:28:10] with all of that. You can see it's all in my letter, that's my recommendation.

[1:28:19] Any questions or comments? I don't think we need to vote on this because we can

[1:28:23] just direct them to my only comment has to do with a 3.5% increase. As you recall,

[1:28:33] I objected to delegating the authority to establish cost of booming

[1:28:40] adjustments to the county and as you'll see later on the change from December to

[1:28:46] December was only 3%. So we're stuck with extra half percent.

[1:28:57] I would use different words besides stuck and so I appreciate your comments and I would

[1:29:10] I would assume that that could be wrapped up or will be wrapped up into anything that they bring back to us and the physical implications of that.

[1:29:30] That's a good point. We just need to understand physically in our budget where that is and how we're going to handle that.

[1:29:40] Okay, so I think at this point we don't need a vote on this but let's direct them to return and then we can look at the effect of all of this on everything in a future meeting.

[1:29:51] Just a question on that I see them file back to to Arts Point. Did we not decide

[1:30:00] We decide to go with the counties, whatever they do as opposed to a CPI adjustment. Did we? We did do that. You were the one that made the motions established apology. Well, it's been a while. It has. So did we, did we decide to go with the county? Yes. Okay. Right. Thank you. Sorry. Okay. That's why I was mentioning for a receiving file to ensure that this is within our notes. Okay. Perfect. Do we have a second on that?

[1:30:29] All second.

[1:30:31] Thank you, Taylor.

[1:30:37] Thank you, Kelly.

[1:30:44] Let's see.

[1:30:51] All right.

[1:30:51] Motion passes.

[1:30:52] We'll see all of this in a future meeting.

[1:30:57] Moving on.

[1:31:00] Item D is the consideration and approval of a merit increase for the retirement administrator.

[1:31:07] As everybody will recall, we had a closed session during our last board meeting where we did

[1:31:12] our performance evaluations for the retirement administrator, general counsel, and the chief

[1:31:17] investment officer.

[1:31:21] During that meeting, we talked about a variety of different things

[1:31:26] and reviewed those. At this juncture, regarding Amy's pay, the retired

[1:31:33] administrator, my recommendation is we approve a merit increase for her as assessed to be done

[1:31:39] in an open meeting based upon her performance review on December 15th, and as to be effective

[1:31:46] in April 26-2, opens up for any board member or questions or comments.

[1:31:56] I'll move.

[1:31:56] We'll increase your shallary by one step.

[1:32:00] Okay.

[1:32:01] Do we have a second on that?

[1:32:05] I'll second it.

[1:32:07] Oh.

[1:32:07] I was just going to say I really do want to appreciate Amy's coming on and taking over.

[1:32:17] I think you've done a great job in our leadership for Visera and hope to continue that with

[1:32:24] team working with all of our unions and county and everybody for the greater good of our

[1:32:30] constituents.

[1:32:30] Thank you for that, Kelly, and I appreciate that you publicly acknowledge.

[1:32:34] I think we do need to acknowledge some of this kind of things besides I want to make sure and I completely agree

[1:32:41] I appreciate your leadership and your role here at the sir. I think you're doing a great job

[1:32:45] So we have a motion and a second motion

[1:33:17] passes

[1:33:17] Thank you everyone moving on to itemy

[1:33:22] proposed trial election procedures for upcoming general member of vacancy special election

[1:33:27] This is for Jordan seat and I want in this over to Amy. Thank you

[1:33:33] Okay, so due to the departure of Jordan Roberts in December, we have a vacancy in the general

[1:33:39] number or a third position on the board and the term for this position expires December 31st,

[1:33:45] 2027. Staff have been working closely with the CUNY Elections Division or office,

[1:33:51] which is part of the clerk recorder and registrar voters on the most efficient way to conduct

[1:33:56] elections for Visera. In fact, prior to this vacancy, we had already been meeting with elections to

[1:34:03] to discuss how to make the process better

[1:34:04] and had been planning to bring some proposed changes

[1:34:07] to the governance committee for their review.

[1:34:10] Discussions with elections were based on experience

[1:34:13] from recent elections we had run,

[1:34:15] the need for clarification and inclusion of current practice

[1:34:19] and the desire to remove some of the inefficient

[1:34:21] back and forth processing via a more logical assignment

[1:34:25] of duties between Visera and elections.

[1:34:28] So in summary, we've come up with a proposed way

[1:34:30] to conduct this upcoming election that includes some of these improvements and a requesting

[1:34:35] that the board approve this as a trial run with the understanding that these changes will

[1:34:40] also be sent to the governance committee for review with the goal of ultimately incorporating

[1:34:45] them into the Sarah's appointment, any election of trustees policy.

[1:34:49] By implementing this now as a trial run, it will enable us to perform the election more

[1:34:54] efficiently and have the vacant seat filled by the May board meeting.

[1:34:58] On a side note, I do acknowledge that for the past two elections, we've encountered some

[1:35:03] scheduling issues with elections where they haven't been able to start the process.

[1:35:07] Maybe as soon as we would like due to competing election activities with their own staffing,

[1:35:13] however, making these changes will hopefully help minimize this going forward by condensing

[1:35:17] the timeline.

[1:35:19] And as I mentioned, cleaning up the back and forth processing steps that have made scheduling

[1:35:23] a challenge.

[1:35:24] And I do want to thank the Cloak Recorder, Michelle Ascension and her staff for their

[1:35:30] collaboration and the time and effort they've taken to review this process with us and

[1:35:35] especially Michelle for her additional advice and guidance on this.

[1:35:40] And I did also mention, I should mention, because I know that this will be a question, but

[1:35:46] we have briefly liked and surveys and looked into other alternatives for running elections

[1:35:52] and it's something that we will probably look into a little more for the next

[1:35:56] selection, but for this election we would like to propose that we do this

[1:36:01] trial run so that we can clean up the current process and then see where we go

[1:36:05] from there and so we're happy to answer any questions on this matter.

[1:36:13] I think it's

[1:36:13] great that you have an alternative and if it works out we may not even have to look

[1:36:19] anywhere else.

[1:36:24] Well, I think you are any other comments, questions? If not, can

[1:36:30] it get a motion?

[1:36:38] A motion no proof.

[1:36:42] Workman, second.

[1:36:55] All right, motion passes.

[1:36:58] On to informational, there's two items in there. Sackers, board of directors

[1:37:01] election for this upcoming term and upcoming educational events calendar for

[1:37:06] Fisera, trustees and staff. It's all been provided. I have no other request for

[1:37:12] public comment, we'll move into staff comment, and I know Amy has something, so Amy, take it away.

[1:37:20] Thanks, I have a few updates. As usual, I have some updates on recruitment, so our two fixed

[1:37:27] term benefit specialists for Elimita were filled and started on November 24. The selections were

[1:37:33] David Chavez, who's been with the Sarah as an office assistant since February of 2024.

[1:37:39] and then David and Rikaze who previously worked for the Ventura County Public Guardian.

[1:37:46] And then regarding the legal management assistant,

[1:37:49] second recruitment was conducted due to low turnout the first time around,

[1:37:53] and an eligible list was received last week,

[1:37:56] and so interviews are being scheduled for early February.

[1:37:59] The managing attorney was opened as a continuous recruitment.

[1:38:03] So far several applications have been received and initial resume review was performed.

[1:38:11] The next step is to conduct the initial screening panel interviews and after that we'll be hiring panel interviews.

[1:38:18] We have good candidate.

[1:38:23] I probably shouldn't say publicly anything about the candidates.

[1:38:29] But I'm happy that we have several applications.

[1:38:32] A

[1:38:38] couple of updates on disability, so as you're aware that County Board of Supervisors

[1:38:42] approved the Sarah's amended bylaws, which included detachment of the disability hearing

[1:38:47] procedures in December, and your board had approved that the prior July.

[1:38:53] And then with this change, the Sarah can now, more easily combine all of the disability-related

[1:38:59] policies and procedures into one document, and that will really help with clarity and ease

[1:39:05] of use, and so we'll be looking at that and bringing some suggestions to the governance

[1:39:11] committee. So it'll be nice to do some cleanup there.

[1:39:19] Staff have been reviewing the current reporting and compilation of records for board meetings

[1:39:24] for disability cases, and we will be making some changes to that soon to make that more

[1:39:29] efficient for both the board and staff. So stay tuned.

[1:39:33] And also staff also met with county risk management to get some input on the front end investigation phase of our process.

[1:39:42] And of course the primary concern was timeline, which we all agreed on.

[1:39:48] And of course we know that we're still working through that backlog.

[1:39:52] But the discussion did confirm that the path we're currently on and improvements we're making will be beneficial to all involved.

[1:39:58] And so we do appreciate the open dialogue and the sharing of information and concerns, and we'd like to see that continue.

[1:40:07] Then lastly, I just wanted to highlight that several of our own staff were actually nominated for awards by the Management Council, and so congrats to them.

[1:40:18] In case you didn't hear that already, so we had a few under mentoring. We had Rebecca Villalobos.

[1:40:25] She's our operations manager over the Actives and Community Property Units.

[1:40:31] also Nancy Jensen in disability was nominated for a mentoring award.

[1:40:37] Shantel Garcia in our desk unit was nominated for integrity award.

[1:40:42] Angie Salisse who works at our front desk was nominated for customer service.

[1:40:47] And then Michelle Hernandez and David Rodriguez are assistant administrators on the pension system.

[1:40:53] And they were nominated for best kept secret.

[1:40:57] That's it.

[1:40:58] All right. Any board member have any comments?

[1:41:02] Hart, I hate to have to bring this up again, but

[1:41:09] Granicus has still failed to implement the annotation

[1:41:16] provision that was supposed to get under our agreement for service.

[1:41:21] It's been more than three months.

[1:41:23] I just don't understand why it's taking so long.

[1:41:29] Maybe that's why the FBPC problem exists because

[1:41:36] Granicus is the contractor for that.

[1:41:41] I just wanted to let you know that we have actively been

[1:41:45] trying to find ways to escalate within side Granicus.

[1:41:48] We've escalated to our account rep.

[1:41:52] we reached out to the county to receive the account rep the County Board of Supervisors has for their environment, we've reached out to them, we've reached out to some of their sales departments, we've escalated numbers of times with their support this morning, I just happened to come across the support phone number so we're going to try to call that so I just want to let you know this is not anything that we are neglecting we are really trying hard to get the solution resolved because this is a bug, this

[1:42:22] This was something that did work and it should continue to work and we are really trying

[1:42:26] our hardest to get this resolved for you.

[1:42:29] If it doesn't work, perhaps we don't pay for it.

[1:42:35] I mean, because I don't know how many people are actually using that service, it sounds like

[1:42:39] no one is because we can't use it.

[1:42:41] Maybe that's not a service we should pay for it.

[1:42:44] Just a thought because...

[1:42:46] Well, the thing is...

[1:42:47] Not hearing back.

[1:42:48] Yeah, it's built into our contract and we signed a three-year contract.

[1:42:53] So I think there's there has to be a way to get it to work.

[1:42:57] I mean, it did work.

[1:42:59] They just need to fix it.

[1:43:01] But I agree that this is probably something we need to start looking into.

[1:43:05] Only because it's been a long time.

[1:43:07] Absolutely.

[1:43:10] I don't believe it's a paid fix.

[1:43:12] It should be part of our support and maintenance agreement.

[1:43:16] Yeah.

[1:43:16] Exactly.

[1:43:17] It's just getting them to fix it.

[1:43:19] Yeah, right. That's my point. Yeah, maybe they could reimburse us or something.

[1:43:25] Yeah, there should be some acknowledgement of an issue broken and something happening because of it.

[1:43:31] Yeah, it's transitioned from their support team to their product team.

[1:43:36] So there has been movement. We just haven't received any updates on where they're at with the resolution of this issue.

[1:43:42] Maybe we need to threaten to shoot them for fail to perform.

[1:43:46] I don't think it's at that point, but I think these are

[1:43:50] I didn't say to do it now, maybe we should think about that if they

[1:43:56] continue to sit on their hands and that solve the problem.

[1:44:02] Do you know if this is just affecting our environment or are there other customers

[1:44:07] that have the same issue?

[1:44:09] I'm not sure they haven't given us any information on that.

[1:44:13] I don't know if we're in our own one bucket or if we are using the same

[1:44:18] components as other customers I do know that at one point they were planning to

[1:44:26] upgrade these or interface but I haven't heard on that either so we'll

[1:44:31] continue to reach out now that we've found this magical phone number we're

[1:44:34] hoping that we can give them a call later and see if we can get somewhere so we're

[1:44:39] working on it. Thank you Leah. Any other board member comment? All right we'll

[1:44:45] Stand adjourned. Thank you.

[1:44:55] We did pull a couple things off our agenda.

Board of Retirement Meeting of January 26, 2026

Agenda

Transcript